Howard Marks' Outlook for Stocks

The Oaktree Capital Management chairman's missives are closely read by leading investors including Warren Buffett. So what's Marks saying now?

It doesn't take much to get me started on a memo. In this case one sentence was enough, in an article from the February 4 online edition of Pensions & Investments, as described by FierceFinance on February 28: "The long-term equity risk premium is typically between 4.5% and 5%."

There's little I hate more than investment generalizations. For years, for example, self-styled authorities on the high yield bond market would say "bond defaults typically take place 2-3 years after issuance." That...